AlarmForce Revenue Reaches Record $5 Million in First Quarter.

TORONTO -- AlarmForce Industries Inc. (TSX:AF) -

Joel Matlin, President and CEO, is pleased to announce results for the first quarter ended January 31, 2006:

---------------------------------------------------------------------
                                 January 31,   January 31,    Change
                                        2006       2005(a)     (over
                                   (3 months     (3 months  the same
                                      ended)        ended)   period)
                                 -----------   -----------  ---------

Revenue                           $5,049,295    $3,998,821       26%
Income before taxes                 $458,533      $313,831       46%
Net income                          $281,138      $193,744       45%

Cash flow from operations
 excluding working capital          $878,341      $667,663       32%

EBITDA before marketing
 expenses                         $2,534,762    $2,064,710       23%

EBITDA                            $1,137,282      $952,209       19%
EBITDA/share                           $0.09         $0.08       13%

Basic Net income / share               $0.02         $0.02       N/A

Diluted Net income / share             $0.02         $0.02       N/A
---------------------------------------------------------------------

(a) restated

EBITDA (earnings before interest, taxes, depreciation and
amortization) is a key performance measure in the security industry
and should not be interpreted as GAAP earnings.

Mr. Matlin said that: "AlarmForce closed the first quarter of 2006 with a subscriber base of 59,300. Total revenues for the three months ended January 31, 2006 increased to $5,049,295, a 26% increase from the same three-month period in 2005. I am very pleased that we continue to expand our brand recognition and increase operating margins through economies of scale, as we head into another year where we can expect to surpass the previous results."

Mr. Matlin added that: " We are pleased that as a result of double-digit growth in recurring revenues as well as improved economies of scale, Income before taxes increased by 46% while net income increased by 45%."

"EBITDA increased to $1,137,282, up by 19% this quarter from the same quarter last year. Our policy is to account for marketing costs as period expenses, that is the costs are not capitalized and amortized as part of the cost of the subscriber accounts. This is because our growth is internally generated rather than based on acquisition of accounts, and the increase in our selling expenses therefore reflects the increasing direct-response marketing expenditure, the primary driver of new subscriber account creation in Canada and the United States. Excluding this discretionary marketing expenditure, the company's EBITDA increased by 23% to $ 2.5 million from the same quarter in 2005. Excluding working capital and investment in growth, operating cash flow increased to $878,341, a 32% increase."

"Our operations in the United States expanded into Ohio during this first quarter and we are now adding customers in this new market, building the AlarmForce brand in the same way that has proved successful in North Carolina. Few, if any, alarm companies create high growth and high cash flows at the same time, and building brand power in a new market of necessity creates a drag on current cash flows. Nevertheless, on the first anniversary of our entrance into the United States in North Carolina, we believe that the US expansion is firmly established. We have grown the account base using cash flows generated from Canadian operations to finance the investment in new accounts, as well as continuing to develop our brand."

AlarmForce is Canada's largest manufacturer and installer of two-way voice home alarms systems, serving the major markets in Canada and selected markets in the United States.

AlarmForce Industries Inc. (TSX:AF)